Shrinkflation, the practice of companies reducing the size or quantity of their products while maintaining the same or higher price, has become widespread among consumer goods suppliers due to high inflation. French supermarket chain Carrefour is taking a stand against shrinkflation by labeling products that have seen a decrease in volume or weight with an increase in price. The aim is to pressure manufacturers to reconsider their pricing policies. Carrefour will soon enter price negotiations with well-known brands like Nestlé, Unilever, and PepsiCo. While consumer groups have accused retailers, including Carrefour, of engaging in shrinkflation, European governments are pushing for lower prices to alleviate the burden on consumers facing rising living costs.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Carrefour exposes shrinkflation to shoppers | Awareness and transparency | Increased consumer awareness | Pressure from government and consumers |
| Shrinkflation becoming widespread | Business practices | Companies giving less for same price | Maximizing profits |
| French government pressuring companies | Pricing policies | Lower prices for consumers | Rising cost of living |
| Retailers accused of shrinkflation | Consumer perception | Increased scrutiny on pricing | Protecting consumer interests |